Nov 30, 2012 4:00pm PST
cuts could be avoided if a grand bargain is struck to avoid the fiscal cliff. if not, it will get ugly, shep. >> shepard: yeah, it will. give us an idea what we are talking about in the way of cuts here if this happens. >> as you mentioned they are split between domestic and defense cuts. let's take a look at the domestic cuts. educational programs including special education will be cut by $2.3 billion medicare payments to hospitals cut by $5.6 billion. prescription drug benefits lose $591 million. on the defense side, across the board 9.4% cut regardless of the program's merit. defense department operations and maintenance loses $3.9 billion in 2013. air force and navy aircraft purchases get cut by more than $4.2 billion. that is why some are calling cutting with a machete instead of a scalp pull. shep? >> shepard: stocks closed higher after a choppy day of trading. dow industrial average eked out 4 point gain over uncertainty about fiscal cliff thing. weakest spending report since may. a lot of storm out of that. according to the commerce department, spending dropped .2% last month.